The DIC Group is one of the leading investors in the German market for commercial real estate

Press Release

DIC Asset AG publishes third quarter figures showing continued growth and sustained high profitability

Frankfurt, 13.11.2006

This press release must not be distributed to, or within the United States of America, Canada, Japan, and Australia.

DIC Asset AG (German Securities ID 509840 / ISIN DE0005098404) today presented its interim report for the third quarter of 2006, posting nine-month figures which confirmed the strong growth and high profitability already seen during the first two quarters. DIC Asset AG’s consolidated net income more than doubled compared to the first nine months of 2005, to Euro 6.4 million (up 156 per cent).

Total revenues for the first three quarters of 2006 were Euro 7.2 million higher than during the same period of the previous year, at Euro 28.5 million (up 34 per cent). Rental income was up strongly, by Euro 7.1 million (or 53 per cent) to Euro 20.6 million, mainly as a result of the significant expansion in the real estate portfolio: floor space tripled since December 2005, to more than 660,000 sqm.

At the same time, the increase in total expenses – up by Euro 3.7 million, or 29 per cent, to Euro 16.4 million – was clearly lower than revenue growth. The increase was due to the significant expansion in operating activity based on the growth in the real estate portfolio.

Nine-month EBITDA (earnings before interest, income taxes, depreciation and amortisation) rose by 43 per cent, to Euro 16.6 million, whilst earnings per share rose from Euro 0.37 to Euro 0.39. At Euro 13.3 million, cash flow from operating activities more than doubled as compared to first nine months 2005.

DIC Asset AG’s total assets exceeded the one billion euro mark for the first time, amounting to Euro 1.1 billion as at 30 Sep 2006 (31 Dec 2005: Euro 370 million). In view of the strong growth in its real estate portfolio, DIC Asset AG commissioned external appraisers to conduct a market appraisal. On the basis of this appraisal, which was carried out on 30 September 2006, we have calculated a net asset value per share of Euro 20.1.

During the third quarter of 2006 the DIC Asset share outperformed its benchmarks: its gain of 41 per cent puts the share well ahead of the SDAX (5 per cent) and the EPRA/NAREIT Europe index (+13 per cent), the benchmark index for European real estate issues.

Ulrich Höller, Chairman of the Management Board, affirmed that DIC Asset AG is adhering to its strategy of continuous growth with sustained high profitability: “We are confident that we can continue to carry out attractive acquisitions in the fourth quarter, building the basis for further earnings growth. Some disposals are also underway. For the year as a whole, we expect a minimum of Euro 20 million in funds from operations (the operating result before taxes, depreciation and amortisation, and before profits from sales and development projects - 30 Sep 2006: Euro 12.3 million; 30 Sep 2005: Euro 5.5 million). DIC Asset AG is currently assessing the conditions for a capital increase, to make sure it is in a position to continue exploiting the potential for acquisitions.”

About DIC Asset AG
Established in 2002, DIC Asset AG, with registered offices in Frankfurt/Main, is a real estate company with a dedicated investment focus on commercial real estate in Germany, pursuing a return-oriented investment policy. DIC Asset AG’s real estate portfolio currently includes more than 750,000 sqm of floor space, spread over 212 properties. The portfolio is divided into three segments: the Core portfolio includes the proprietary portfolio held on a long-term basis and offering stable, attractive rental yields; the Value-Added portfolio contains real estate with promising performance potential over the medium term, while the Opportunistic Co-Investments portfolio is comprised of real estate investments that have a more pronounced risk/return profile, which will be placed with third parties following a repositioning under an individual business plan. The real estate portfolio currently being managed totals approx. Euro 1.9 billion. DIC Asset AG has been included in the SDAX® segment of the Frankfurt Stock Exchange since June 2006.

Disclaimer
This press release does not constitute an offer of securities for sale in the United States. The securities of DIC Asset AG described herein have not been and will not be registered under the U.S. Securities Act of 1933, as amended (the “Securities Act”), or the laws of any State, and may not be offered or sold within the United States, except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and applicable State laws. DIC Asset AG does not intend to register any portion of the offering in the United States or to conduct a public offering of securities in the United States.

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